News Releases

Ultralife Corporation
Nov 02, 2017
Ultralife Corporation Reports Third Quarter Results

NEWARK, N.Y., Nov. 02, 2017 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $1.3 million on revenue of $21.0 million for the third quarter ended October 1, 2017.  For the quarter ended September 25, 2016, the Company reported operating income of $1.1 million on revenue of $19.6 million.

“Third quarter sales grew 7% and operating profit increased 11% further illustrating the solid operating leverage of our business model. We are particularly pleased to report broad-based sales growth across a variety of end markets, both commercial and government/defense, domestically and internationally.  Commercial sales increased 8%, boosted by a 14% gain in medical sales, while government/defense sales grew 6%, including a 58% increase within our Battery & Energy Products business.  Having more than doubled both operating profit and EPS for the first nine months of the year, we are well positioned towards delivering another year of profitable growth,” said Michael D. Popielec, President and Chief Executive Officer.  “In addition, the BA-5390 $21.4 million IDIQ award received in March, the VIPER $4.7 million contract received in August, and the recent BA-5790/5795 CFx $49.8 million IDIQ award received in September serve as positive indicators of future growth potential as we finish out 2017 and head into 2018.”

Third Quarter 2017 Financial Results

Revenue was $21.0 million, an increase of $1.4 million, or 7%, compared to $19.6 million for the third quarter of 2016 reflecting a $3.7 million increase in Battery & Energy Products sales partially offset by $2.3 million lower Communications Systems sales.  Battery & Energy Products sales increased 25% to $18.6 million compared to $14.9 million last year.  Communications Systems sales declined 48% to $2.4 million compared to $4.7 million for the same period last year which included $2.3 million of Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) shipments. 

Gross profit was $6.3 million, or 29.7% of revenue, compared to $6.0 million, or 30.5% of revenue, for the same quarter a year ago.  Battery & Energy Products’ gross margin was 27.9%, compared to 30.3% last year, a decrease of 240 basis points reflecting product mix and incremental supply chain and logistics fees.  Communications Systems’ gross margin increased to 44.0% compared to 31.4% for the prior year demonstrating the high value proposition associated with core amplifier and integrated solutions products.       

Operating expenses were $5.0 million compared to $4.9 million last year reflecting continued tight control over discretionary spending.  Operating expenses were 23.7% of revenue compared to 24.8% of revenue for the year earlier period.  

Operating income was $1.3 million compared to $1.1 million last year for an operating margin of 6.0% compared to 5.8% last year. 

Net income was $1.1 million, or $0.07 per share, versus net income of $1.0 million, or $0.07 per share, for the third quarter of 2016.  Earnings per share for the trailing twelve-month period are $0.36.

About Ultralife Corporation

Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government, defense and commercial customers across the globe.

Headquartered in Newark, New York, the Company's business segments include Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorp.com.

Conference Call Information

Ultralife will hold its third quarter earnings conference call today at 10:00 AM ET. To participate in the live call, please dial (800) 915-4836 at least ten minutes before the scheduled start time, identify yourself and ask for the Ultralife call. A live webcast of the conference call will be available to investors in the Events & Presentations section of the Company's website at http://investor.ultralifecorporation.com. For those who cannot listen to the live broadcast, a replay of the webcast will be available shortly after the call at the same location.

This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include:  potential reductions in revenues from key customers, uncertain global economic conditions and acceptance of our new products on a global basis. The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company's analysis only as of today's date. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances.  Further information on these factors and other factors that could affect Ultralife’s financial results is included in Ultralife’s Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K. 

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
       
 

ASSETS
  October 1,   December 31,  
    2017       2016    
Current Assets:        
  Cash and Cash Equivalents $ 14,688     $ 10,706    
  Trade Accounts Receivable, Net   15,741       13,179    
  Inventories   24,922       23,456    
  Prepaid Expenses and Other Current Assets   2,602       2,079    
  Total Current Assets   57,953       49,420    
         
Property, Equipment and Improvements, Net   7,612       7,999    
Goodwill, Intangibles and Other Assets   27,776       27,325    
  Total Assets $ 93,341     $ 84,744    
         
 

LIABILITIES AND SHAREHOLDERS' EQUITY
 

Current Liabilities:
     
  Accounts Payable $ 7,108     $ 7,292    
  Accrued Compensation and Related Benefits   2,286       1,258    
  Accrued Expenses and Other Current Liabilities   3,673       2,778    
  Total Current Liabilities   13,067       11,328    
Deferred Income Taxes and Other Non-Current Liabilities   5,732       5,556    
  Total Liabilities   18,799       16,884    
         
Shareholders' Equity:        
  Common Stock   1,961       1,932    
  Capital in Excess of Par Value   179,794       178,163    
  Accumulated Deficit   (86,694 )     (90,542 )  
  Accumulated Other Comprehensive Loss   (1,887 )     (3,080 )  
  Treasury Stock   (18,470 )     (18,443 )  
  Total Ultralife Equity   74,704       68,030    
Non-Controlling Interest   (162 )     (170 )  
  Total Shareholders’ Equity   74,542       67,860    
         
  Total Liabilities and Shareholders' Equity $ 93,341     $ 84,744    



ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
               
  Three Month Periods Ended   Nine Month Periods Ended
  October
1,
  September
25,
  October
1,
  September
25,
    2017       2016       2017       2016  
Revenues:              
  Battery & Energy Products $ 18,616     $ 14,943     $ 52,977     $ 47,142  
  Communication Systems   2,431       4,688       10,045       13,693  
  Total Revenues   21,047       19,631       63,022       60,835  
               
Cost of Products Sold:              
  Battery & Energy Products   13,430       10,420       38,119       32,738  
  Communication Systems   1,362       3,214       5,537       9,795  
  Total Cost of Products Sold   14,792       13,634       43,656       42,533  
               
  Gross Profit   6,255       5,997       19,366       18,302  
               
Operating Expenses:              
  Research and Development   1,355       1,357       3,678       4,438  
  Selling, General and Administrative   3,637       3,502       11,262       11,745  
  Total Operating Expenses   4,992       4,859       14,940       16,183  
               
Operating Income   1,263       1,138       4,426       2,119  
               
Other Expense   (58 )     (30 )     (200 )     (167 )
Income Before Income Taxes   1,205       1,108       4,226       1,952  
               
Income Tax Provision   104       92       370       213  
               
Net Income   1,101       1,016       3,856       1,739  
               
Net Loss (Income) Attributable to Non-Controlling Interest   (3 )     3       (8 )     25  
               
Net Income Attributable to Ultralife Corporation $ 1,098     $ 1,019     $ 3,848     $ 1,764  
               
               
Net Income Per Share Attributable to Ultralife Common Shareholders – Basic $ .07     $ .07     $ .25     $ .12  
               
Net Income Per Share Attributable to Ultralife Common Shareholders – Diluted $ .07     $ .07     $ .24     $ .11  
               
Weighted Average Shares Outstanding – Basic   15,564       15,207       15,495       15,262  
               
Weighted Average Shares Outstanding – Diluted   15,971       15,298       15,818       15,446  


Company Contact:
Ultralife Corporation
Philip A. Fain
(315) 210-6110
pfain@ulbi.com 

Investor Relations Contact:
LHA
Jody Burfening
(212) 838-3777
jburfening@lhai.com 

Source: Ultralife Corporation